Rendering of proposed hotel-condo project at 123 Washington St., just south of the World Trade Center site.

W hotel on Washington wont be as easy as 1, 2, 3

By Ronda Kaysen

Larry Silverstein isnt the only developer Downtown eyeing the remaining tax-exempt Liberty Bonds for the World Trade Center redevelopment. Another Lower Manhattan heavyweight bid for a chunk of the bonds to finance a hotel and condo project a few blocks south of the World Trade Center site, and the city appears interested in his proposal.

Developer Joseph Moinian applied for $147 million in tax-exempt bonds for a 53-story W Hotel and residential condominium at 123 Washington St. The $240 million development includes 220 hotel rooms and 180 residential condo units. The bonds would be used for the hotel portion of the building.

The property, formerly 4 Albany St., is currently an empty lot, since a 9/11 damaged building there was removed earlier this year to make way for the new development.

The city is considering giving Moinian $50 million in Liberty Bonds for the project. Its a good use. Its a project that would start right away, said Andrew Alper, president of the citys Economic Development Corporation and chairperson of the Industrial Development Agency, which decides on the citys Liberty Bond applications.

But Silverstein, the leaseholder for the World Trade Center site, has been pleading his case for the remaining pot of Liberty Bonds. $3.35 billion in triple-tax free Liberty Bonds remain for commercial use. Earlier this month, Governor George Pataki tapped $1.67 billion for Silverstein. Silverstein maintains he needs all the remaining bonds to finance the build out of the Trade Center.

The $50 million that may go to 123 Washington represents a small percentage of Silversteins bond application and it is unclear how vigorously the W.T.C. developer is opposing it. Silverstein declined to comment for this story.

Moinian is a major player Downtown. His company, the Moinian Group, owns Goldman Sachs office at 180 Maiden Lane, as well as 100 John St., 90 John St., 17 Battery Place and 20 West St., a condo conversion. Moinian was the first developer to use Liberty Bonds for a residential conversion when he transformed 90 Washington St. into a luxury rental building.

He insists his project will not obstruct Silversteins goals. I want nothing more than to see Larry Silverstein and Silverstein Properties succeed in developing the World Trade Center site, he said in a statement. I have no doubt that he will get this done.

The hotel will occupy the lower 25 floors of the Gwathmey Siegel-designed tower, and include meeting rooms, an ancillary spa and fitness center, a high-end restaurant and lounge and a sky lobby. It is expected to open at the end of 2007.

Moinian purchased 123 Washington St. from Deutsche Bank when it was still 4 Albany St. The original structure was demolished as part of the sale agreement. Another formerly Deutsche Bank-owned, contaminated building, 130 Liberty St., is located across the street from 123 Washington and is also being demolished to make way for redevelopment.